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The dollar weakened against currencies of major commodity exporters as traders anticipated further gains in oil, copper, steel and other metals. Investors continued to adjust expectations for when the Federal Reserve would begin tapering bond purchases and raising rates.
A weaker dollar tends to support dollar-denominated commodity prices, while commodity-currency strength reflects broad resource demand. Shifting Fed tapering expectations add volatility to the dollar and to commodity pricing.
reuters.comStanley WhiteMay 11, 2021After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
After 323 past bullish macro events, Crude Oil (Brent) moved a median +0.7% over 5 sessions (58% higher; middle half -2.9% to +3.7%), and +1.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
